(i) Employment in the service sector has not increased
to the same extent as production.

(ii) Workers in the tertiary sector do not
produce goods.

(iii) Most of the workers in the organised sector
enjoy job security.

(iv) A large proportion of labourers in
India are working in the unorganised sector.

(v) Cotton is a natural product and cloth
is a manufactured product.

(vi) The activities in primary, secondary and tertiary
sectors are interdependent .

Q2 :

Choose the most appropriate answer.

(a) The sectors are classified into public and private
sector on the basis of:

(i) employment conditions

(ii) the nature of economic activity

(iii) ownership of enterprises

(iv) number of workers employed in the enterprise

(b) Production of a commodity, mostly through the natural
process, is an activity in ______________ sector.

(i) primary

(ii) secondary

(iii) tertiary

(iv) information technology

(c) GDP is the total value of _____________ produced
during a particular year.

(i) all goods and services

(ii) all final goods and services

(iii) all intermediate goods and services

(iv) all intermediate and final goods and services

(d) In terms of GDP the share of tertiary sector in 2003
is _________

(i) between 20 per cent to 30 per cent

(ii) between 30 per cent to 40 per cent

(iii) between 50 per cent to 60 per cent

(iv) 70 per cent

Answer :

(a) (iii)

(b) (i)

(c) (ii)

(d) (iii)

Q3 :

Match the following:

Problems faced by farming sector

Some possible measures

1.

Unirrigated land

(a)

Setting up agro-based mills

2.

Low prices for crops

(b)

Cooperative marketing societies

3.

Debt burden

(c)

Procurement of food grains by government

4.

No job in the off season

(d)

Construction of canals by the government

5.

Compelled to sell their grains to the local traders soon
after harvest

(e)

Banks to provide credit

Answer :

Problems faced by farming sector

Some possible measures

1.

Unirrigated land

(d)

Construction of canals by the government

2.

Low prices for crops

(c)

Procurement of food grains by government

3.

Debt burden

(e)

Banks to provide credit with low interest

4.

No job in the off season

(a)

Setting up agro-based mills

5.

Compelled to sell their grains to the local traders soon
after harvest

(b)

Cooperative marketing societies

Q4 :

Find the odd one out and say why.

(i) Tourist guide, dhobi, tailor, potter

(ii) Teacher, doctor, vegetable vendor, lawyer

(iii) Postman, cobbler, soldier, police constable

(iv) MTNL, Indian Railways, Air India, SAHARA Airlines,
All India Radio

Answer :

(i) Tourist guide

He is appointed by the government, while dhobi, tailor
and potter belong to the private sector.

(ii) Vegetable vendor

His is the only profession that does not require a formal
education.

(iii) Cobbler

The rest are workers in the public sector, while his profession
is part of the private sector.

(iv) SAHARA Airlines

It is a private enterprise, while the rest are government
undertakings.

Q5 :

A research scholar looked at the working people in the
city of Surat and found the following.

Place of work

Nature of employment

Percentage of working people

In offices and factories registered with the government

Organised

15

Own shops, office, clinics in marketplaces with formal
license

-

15

People working on the street, construction workers,
domestic workers

-

20

Working in small workshops usually not registered with the
government

-

-

Complete the table. What is the percentage of workers in
the unorganised sector in this city?

Answer :

Place of work

Nature of employment

Percentage of working people

In offices and factories registered with the government

Organised

15

Own shops, office, clinics in market places with formal
license

Organised

15

People working on the street, construction workers,
domestic workers

Unorganised

20

Working in small workshops usually not registered with the
government

Unorganised

50

The percentage of workers in the unorganised sector in this
city is 70%.

Q6 :

Do you think the classification of economic activities
into primary, secondary and tertiary is useful? Explain how.

Answer :

The classification of economic activities into primary,
secondary and tertiary is useful on account of the information it provides on
how and where the people of a country are employed. Also, this helps in
ascertaining as to which sector of economic activity contributes more or less
to the country's GDP and per capita income. If the tertiary sector is
developing much faster than the primary sector, then it implies that
agriculture is depleting, and the government must take measures to rectify
this. The knowledge that the agricultural profession is becoming unpopular or
regressive can only come if we know which sector it belongs to. Hence, it is
necessary to classify economic activities into these three basic sectors for
smooth economic administration and development.

Q7 :

For each of the sectors that we came across in this
chapter why should one focus on employment and GDP? Could there be other issues
which should be examined? Discuss.

Answer :

For each of the sectors that we came across in this chapter,
one should focus on employment and GDP because these determine the size of a
country's economy. A focus on employment and GDP helps determine two important
thingsâ€”per capita income and productivity. Hence, in each of the three
sectors, employment rate and status as well as its contribution to the GDP help
us understand how that particular sector is functioning and what needs to be
done to initiate further growth in it.

Q8 :

Make a long list of all kinds of work that you find
adults around you doing for a living. In what way can you classify them?
Explain your choice.

Answer :

Attempt this question on your own.

Q9 :

How is the tertiary sector different from other sectors?
Illustrate with a few examples.

Answer :

The tertiary sector is different from the other sectors
because it does not manufacture or produce anything. For this reason, it is
also known as the service sector. It aids the primary and secondary sectors in
development. The tertiary sector involves services like transport, storage of
goods, communications, banking and administrative work.

Q10 :

What do you understand by disguised unemployment? Explain
with an example each from the urban and rural areas.

Answer :

Disguised unemployment is a form of underemployment where
one has a job but the work is divided. It is not apparent as compared to
someone without a job who is clearly unemployed. In rural areas, this can be
seen in the farming community where all members of a family might be working on
a farm even though so many hands are not required. They do so because of lack
of another job. In urban areas, disguised unemployment can be seen in the
service sector where painters, plumbers, repair persons and those doing odd
jobs have work but they may not find daily or regular employment.

Q11 :

Distinguish between open unemployment and disguised
unemployment.

Answer :

Open unemployment is when a person has no job in hand and
does not earn anything at all. Disguised unemployment, on the other hand, is
mostly found in the unorganised sector where either work is not consistently
available or too many people are employed for some work that does not require
so many hands. This is the essential difference between open unemployment and
disguised unemployment.

Q12 :

"Tertiary sector is not playing any significant role
in the development of Indian economy." Do you agree? Give reasons in
support of your answer.

Answer :

"Tertiary sector is not playing any significant role in
the development of the Indian economy". This statement is not true. The
tertiary sector has contributed vastly to the Indian economy, especially in the
last two decades. In the last decade, the field of information technology has
grown, and consequently, the GDP share of the tertiary sector has grown from
around 40% in 1973 to more than 50% in 2003.

Q13 :

Service sector in India employs two different kinds of
people. Who are these?

Answer :

Service sector in India employs two different kinds of
people. These are primary and ancillary workers. Primary workers include those
who directly provide services while ancillary workers are composed of those who
give services to the service providers. For example, consultants make available
their services to consultancy firms etc.

Q14 :

Workers are exploited in the unorganised sector. Do you
agree with this view? Give reasons in support of your answer.

Answer :

Workers are exploited in the unorganised sector. I agree
with this view. The unorganised sector does not offer any job security. Neither
does it allow for scope of trade or workers' unions. Workers can be easily
exploited in this scenario. They cannot afford to rebel against an employer's
tyranny as the latter can fire them at any time.

Q15 :

How are the activities in the economy classified on the
basis of employment conditions?

Answer :

On the basis of employment conditions, activities in the
economy are classified as organised and unorganised. The organised sector
offers job security and employment benefits, while the unorganised sector is
marked by low wages and lack of job security. In rural areas, the unorganised
sector comprises landless agricultural labourers, sharecroppers and artisans.
In urban areas, this group contains small-scale industry workers, construction
workers, street vendors, rag-pickers, etc.

Q16 :

Compare the employment conditions prevailing in the
organised and unorganised sectors.

Answer :

The employment conditions prevailing in the organised and
unorganised sectors are vastly different. The organised sector has companies
registered with the government and hence, it offers job security, paid
holidays, pensions, health and other benefits, fixed working hours and extra
pay for overtime work. On the other hand, the unorganised sector is a host of
opposites. There is no job security, no paid holidays or pensions on
retirement, no benefits of provident fund or health insurance, unfixed working
hours and no guarantee of safe work environment.

Q17 :

Explain the objective of implementing the NREGA 2005.

Answer :

The objective of implementing the NREGA 2005 was to provide
100 days of guaranteed employment to those people in rural India who can work,
and are in need of work. This Right to Work has been implemented in 200
districts. If the government is unable to provide this employment, then it has
to give unemployment allowances to the people.

Q18 :

Using examples from your area compare and contrast the
activities and functions of private and public sectors.

Answer :

Attempt this question on your own.

Q19 :

Discuss and fill the following table giving one example
each from your area.

Well-managed organisation

Badly-managed organisation

Public sector

Private sector

Answer :

Well-managed organisation

Badly-managed organisation

Public sector

Delhi Metro Rail Corporation

Air India

Private sector

Reliance Mobile

Satyam

Q20 :

Give a few examples of public sector activities and
explain why the government has taken them up.

Answer :

A few examples of public sector activities are provision of
water, electricity and some modes of transport. The government has taken these
up because water and power are needed by everyone. If the work of providing
electricity and water is left to private enterprises, the latter might exploit
this opportunity and sell these at rates which the masses cannot afford. Hence,
to ensure that basic amenities like water and power are available for all, the
government supplies these at low and affordable rates.

Q21 :

Explain how public sector contributes to the economic
development of a nation.

Answer :

The public sector contributes to the economic development of
a nation by not mere financial profits. The public sector plays a vital role in
contributing to the Human Development Index via its functioning in health and
education services. Also, by buying food grains at a "fair price"
from farmers, providing electricity, water, postal services at low rates, the
government ensures that the people have a good living. It utilises taxes and
grants to pay for the same. Thus, it plays a vital role in adding to the
economic development of a nation, based on its human development situation.

Q22 :

The workers in the unorganised sector need protection on
the following issues: wages, safety and health. Explain with examples.

Answer :

The workers in the unorganised sector need protection on the
following issues: wages, safety and health. In the construction sector,
labourers are employed on a daily basis. Hence, they have no job security.
Here, wages too differ from time to time. Consequently, the government has set
up a minimum wages act to protect such workers from economic exploitation.

The same problem exists for miners working in private mining
companies. Their safety is secondary to the company's profits, and as a result,
many miners suffer grievous injuries (and many a times, even die) due to
inadequate safety gear and norms. Governments of most nations have now laid
down strict rules for private enterprises to ensure workers' safety.

Most companies in the unorganised sector do not provide
health insurance to their employees. Some of these might be involved in
dangerous factory production that may harm a worker's health in the long term.
These workers need to be protected against the tyranny of the employer, and it
is here that the government steps in.

Q23 :

A study in Ahmedabad found that out of 15,00,000 workers
in the city, 11,00,000 worked in the unorganised sector. The total income of
the city in this year (1997-1998) was Rs 60,000 million. Out of this Rs 32,000
million was generated in the organised sector. Present this data as a table.
What kind of ways should be thought of for generating more employment in the
city?

Answer :

-

Organised Sector

Unorganised Sector

Total

No. of workers

4,00,000

11,00,000

15,00,000

Income (Rs)

32,000 million

28,000 million

60,000 million

Ways to generate more employment in the city of Ahmedabad
have to be provided by the government, especially in the unorganised sector. As
the table shows, the organised sector's earnings are much higher than that of
the unorganised sector even though the latter employs almost 80% of the city
workers. More companies need to be brought under the roof of the organised
sector so that workers from the unorganised sector are attracted to jobs there,
with higher and more secure wages. For this, the government must provide loans
and aid to companies transferring from unorganised to organised sectors.

Q24 :

The following table gives the GDP in Rupees (Crores) by
the three sectors:

Year

primary

secondary

tertiary

1950

80,000

19,000

39,000

2000

3,14,000

2,80,000

5,55,000

(i) Calculate the share of the three sectors in GDP for
1950 and 2000.

(ii) Show the data as a bar diagram similar to Graph 2 in
the chapter.

(iii) We can draw the conclusion that the share of the
tertiary sector in the GDP has almost doubled, while that of the primary sector
has almost halved. The secondary sector has grown by about 10% in the last five
years.

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